ARUSHA, Tanzania – The Tanzanian finance and planning minister, Dr. Philip Mpango has defended the proposal to introduce Value Added Tax (VAT) on tourism services.
Presenting the Tanzania 2016/17 budget proposals in Parliament two weeks ago, Dr. Mpango said the government would impose VAT on tourism services, such as park fees, ground transport services, tourist guiding, game driving, water safaris, animal or birds watching.
Dr. Mpango, while responding to member of parliaments and a section of tourism stakeholders mainly tour operators said that the 18% charge on tourism services will remain since they were initiated after a thorough research. “We came up with this proposal after we were convinced that VAT charges are not a major aspect in tourists when making decision on the destination”, he stressed.
Some of the aspects that are put into considerations, according to the minister, include attractions, security, tourism services and transport. Read More